Going debt-free with no interest liabilities, the company’s net profit increased to Rs 38.72 crores in the first half of FY 2021-22 from Rs 9.33 crores in the same period last year
Venus Remedies Ltd has posted a 315% increase in net profit in the first half of this financial year as compared to the corresponding period last year.
Announcing its unaudited half-yearly financial results for FY 2021-22 for the period April 1 to September 30, Venus Remedies stated that its net profit rose to Rs 38.72 crore from Rs 9.33 crore in the corresponding half of the previous year after having divested itself of all interest liabilities following repayment of its entire debt with banks and financial institutions in the financial year 2020-21.
The company’s EBIDTA percentage to revenue from operations also grew from 13.15% to 15.84%, reflecting steady growth. Likewise, the total sales of Venus Remedies rose to Rs 329.49 crore as against Rs 298.12 crores in the corresponding period of the financial year 2020-21.
“The credit for our profitability growth in the first half of this financial year largely goes to our astute financial management. Having cleared our entire debt, we have reduced our interest cost and financial obligations to zero. Another major contributory factor has been our robust sales, which have in turn considerably reduced our freight costs and other selling expenses. The proactive approach we have followed in monetising our intellectual property and further strengthening our relations with our suppliers and customers has also worked to our advantage,” said Mr Saransh Chaudhary, President, Global Critical Care, Venus Remedies Ltd, while commenting on the company’s notable financial performance.
Chaudhary said Venus Remedies has done well in spite of the steep hike in prices of active pharmaceutical ingredients of critical care formulations. “We have so far been able to absorb this price pressure, but it might become challenging in times to come because the increase in API pricing is not keeping pace with the formulation pricing across regions,” he said.
Venus Remedies’ R&D initiatives to develop innovative products catering to unmet medical needs and its focus on building a robust product pipeline consisting of a balanced mix of generic and R&D-based drugs have put the company on a trajectory of high growth.